Will the U.S. dollar remain strong? Has gold reached its bottom?

Sean Brazney: Hello! My name is Sean Brazney, Sales Director for Monex Deposit Company. I have the pleasure of being here today with Jeffrey Christian, Managing Partner and Founder of CPM Group and one of the many analysts over there at CPM Group. Again, thank you so much for being with us today Jeffrey.

Jeffrey Christian: It’s always my pleasure.

Sean Brazney: We’re looking at gold, of course we’re here to talk about our Precious Metals For More Than Just Inflation report and focusing on gold, because in September, October, and November, we saw gold hit some low prices that we haven’t seen in about two and a half years. September and October tapped at $1,621 lows for each month and then November here just recently came down and tapped a $1,618 low. When you’re out there online and read some of the information, come across some information that talks about central bank buying of gold and you and I always talk about central banks being very price sensitive and seeing the lows when they want to be buying gold. Can you share some more data with us on what we’re seeing out there, as far as, central bank buying?

Jeffrey Christian: Sure. We’ve actually seen stronger central bank buying for a couple years now and last year, 2021, central banks bought about $11.8 million ounces on a net basis as a group of buyers. It’s down on a net basis this year, but what we’ve seen is exactly what you were talking about, with the lower gold prices in the 2nd and 3rd quarters, we’ve seen a lot of central banks buying gold. They’re taking advantage of the fact that the prices have come down. So, in the 2nd quarter, you saw about $3.3 million ounces of net central bank gold purchases and they came from a number of different banks. Then in the 3rd quarter, the reported amounts of gold that central banks have bought has been around $2.3 million ounces.

Sean Brazney: Great information. Coming along with gold… kind of a sub question is… in November when gold was tapping at $1,618, and I have the pleasure of talking to investors or traders who are thinking about buying gold, and I continue to hear $1,500, $1,400… waiting for the price to go down. I was talking about the potential to come back up into this $1,688, $1,720s area for gold and in the last five days we’ve seen it move over $100 an ounce and today intraday high at $1,720. I don’t know if this is a question for me that I want you to answer or for my investors, maybe help with my own psychological well-being, but when you see a rally like this you see investors that attempt to buy after it goes up. They don’t look for that low to purchases. Can you share some wisdom with us that helps our investors to maybe avoid that psychological mistake in the future?